Mergers, Acquisitions and Financial Results

Gateway Communications, the provider of communications services to telecommunications operators and businesses in Africa, has further strengthened its leading market position through the completion of the integration of Link Africa, acquired from pan-African GSM group Celtel International last year for over $50 million.

Since the acquisition of Link Africa, which completed in June last year, Gateway has seamlessly integrated Link Africa’s customers, network infrastructure and systems and has terminated over one billion conversation minutes for carriers, multinationals and enterprises throughout the continent. Data traffic on Gateway’s network grew 33 per cent in the second half of last year and the acquisition has contributed substantially to the Group’s service proposition and infrastructure, with a further 15 carrier customers joining the group since June.

New customers choosing to use Gateway since the acquisition include Vodacom, Madagascar’s Madacom, Celtel, and operators in markets such as Kenya, Chad, Zambia, South Africa and the Seychelles. Telia Sonera, Sprint, Qwest and Neuf Telecom are all European customers who have extended their connectivity into Africa through Gateway since the acquisition. Gateway has expanded its reach to over 30 African markets, serving over 200 fixed line and mobile telephone companies and 3000 corporations as at December 2005.

The resource available to customers has expanded significantly with Gateway investing further millions of dollars in systems and infrastructure for African operators. Over the past eight months, Gateway’s employee base has grown 45% as the Group has integrated Link Africa businesses to create a combined team with unmatched experience in connectivity in Africa. Gateway now has offices in London, Johannesburg, Geneva, Cape Town and Brussels from which it manages it’s many valued customer relationships.

Peter Gbedemah, CEO of Gateway Communications commented: “The response we have had from the African market and our global customers from the acquisition has been overwhelming. Our focus and energy over the past eight months has been to successfully and seamlessly integrate the businesses with maximum benefit delivered to our customers in terms of the African expertise, scale and reach of our business. More than ever Gateway is now uniquely positioned to support the explosive growth of communications traffic in the region and support the deployment of regional based networks to meet the public’s demand for high-quality GSM and data services in Africa.”